Our DailyMarket Reports

Morning Gold & Silver Market Report – 1/31/2014

1/31/2014 8:18:20 AM By: Ryan Schwimmer

GOLD SHOWING NEGATIVE CORRELATION TO STOCKS

The Gold price is higher in early-morning trading as major stock indices fall, though the yellow metal is slated for its first weekly fall in six weeks. Quantitative Commodity Research owner Peter Fertig explained some of the movement, saying, “You have strength of the dollar against emerging markets currencies, and that's negative for Gold. But what is also important is the negative correlation between stock markets, especially the U.S. ones, and Gold and the weakness in emerging markets. Fears that it may lead to widespread crisis are currently sending shivers through the stock markets.”

While Gold is up nearly four percent in January, U.S. stocks are down four percent. This has some worried, as the January performance of stock markets has been an accurate foreshadowing of the rest of the year 62 of the last 85 years. Volatility is being measured up 26 percent this month, and on two occasions in the past, a number that high has been followed by the S&P 500 dropping five percent or more on the year.

At 9 a.m. (ET), the APMEX Precious Metals spot prices were:

Gold, $1,253.10, Up $8.60.

Silver, $19.41, Up $0.23.

Platinum, $1,384.90, Up $0.60.

Palladium, $706.80, Down $1.10.

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Disclaimer:
APMEX’s ‘Market Reports’ provide our readers with a review of spot price activity and some of the factors that may be affecting the market for precious metals, three times during the trading day. While the information is obtained from sources we believe to be reliable, we do not guarantee its accuracy or its completeness and we encourage you to conduct your own investigation prior to making any decision based on the information. The "News and Commentaries" are not intended as a comprehensive discussion and there may be other factors that may be affecting the financial marketplace. These "News and Commentaries" are provided for informational purposes only and do not constitute a recommendation by APMEX to hold, to purchase or to sell any precious metal product. All orders, all purchases and all sales, if any, are subject to the terms of the User Agreement and other applicable policies.